The strategic role of a company's reward system is to
A) compensate employees for performing their assigned duties in a diligent fashion.
B) boost employee morale in ways that create widespread job satisfaction.
C) enlist employees' energetic commitment to competent strategy execution and operating excellence by rewarding them, both monetarily and non-monetarily, for their contributions.
D) relieve managers of the burden of closely monitoring each employee's performance.
E) boost labor productivity and help lower the firm's overall labor costs.

Question

Quizplus · Accepted Answer

The strategic role of a company's reward system is to motivate employees to contribute to the achievement of the firm's strategic goals by providing them with both monetary and non-monetary rewards. This helps to enlist their energetic commitment to competent strategy execution and operating excellence. While compensating employees for performing their assigned duties and boosting employee morale are important aspects of a reward system, the strategic role goes beyond these individual goals. Similarly, a reward system should not be viewed as a substitute for close monitoring of employee performance, nor should it be solely focused on lowering labor costs.

The Strategic Role of a Company's Reward System Is to